[Oldboy]

It's a strange thing to write that Mazda sales went up in both the US and China, yet still the company's profits went down in Q2.

Mazda Motor Corp. today said quarterly profit fell 5.4 percent despite higher auto sales in China and the U.S. that helped cushion the blow of foreign exchange losses and costs booked for new plants in Mexico and Thailand.

Mazda said in a statement that its April-June operating profit was 53.32 billion yen ($430 million). That was down from 56.38 billion yen a year ago.

Foreign exchange rates are completely out of the company's control, and new plants are only being built because of the company's success and growth. The company still projects that for the financial year that ends in March 2016 an operating profit of 210 billion yen, which is up from 203 billion yen a year earlier.

http://www.autonews.com/article/201...ofit-falls-5-4-despite-strong-china-u-s-sales

 

[Jay]

Still not too bad, at least they are making those good sales which with the current model line up they have going is going to last them for a while to come: Mazda3 and CX-3 being probably some of the strongest.

 

[Kanban]

i dont find that odd at all. They just launched the MX-5 and CX-3 in the same quarter. That gobbles up a significant chunk of Capital. Wait until inflows from FIAT and Toyota start coming...

 

[Oldboy]

Yea, I think that they just had a big expenditure to get these new models off the ground, but now they can ride on that and just reap the rewards.

 

[CXIII]

Yea, I think that they just had a big expenditure to get these new models off the ground, but now they can ride on that and just reap the rewards.

And they'll have a long time to do that since the generations for these just started. I remember before you used to see car makers stretch production up to 10 years then it went down to as little as 4-5, maybe we'll see these mazdas approaching closer to 10.

 

[Volta]

And they'll have a long time to do that since the generations for these just started. I remember before you used to see car makers stretch production up to 10 years then it went down to as little as 4-5, maybe we'll see these mazdas approaching closer to 10.

I don't see why they would stretch production of these models to 10 years. People like new things. I'm sure that it's hard to sustain customer interest for that long at this point.

 

[okhick]

And they'll have a long time to do that since the generations for these just started. I remember before you used to see car makers stretch production up to 10 years then it went down to as little as 4-5, maybe we'll see these mazdas approaching closer to 10.

With ever accelerating technological enovation, no manufacturer can remain competitive with 10 year old designs. Product cycles are more likely to shrink than stretch.